India and Italy are engaging in discussions to address the challenges posed by the concentration of critical mineral resources in a few regions, primarily dominated by China. Recognizing the potential risks to global economic development, both countries are exploring avenues for collaboration and diversification of supply chains.

Commerce and Industry Minister Piyush Goyal has voiced concerns about the over-dependence on specific nations for critical minerals, which are essential for various sectors, including semiconductors, aerospace, and electric vehicle batteries. He emphasized the importance of the world acknowledging the potential dangers of having supply and processing concentrated in particular geographical areas, which could impede economic progress.

Echoing this sentiment, Italian Deputy Prime Minister and Foreign Minister Antonio Tajani suggested that the private sectors of India and Italy could consider forming joint ventures to leverage opportunities in the critical minerals segment. Tajani pointed out that Italian companies are already involved in the processing of critical minerals and sees potential for India to play a more significant role, especially in regions like Africa and South America. He highlighted the Indo-Pacific area, Africa, the Mediterranean Sea, and the Suez Canal as key areas that could facilitate joint ventures between the two nations.

India has been actively promoting research and development to discover alternative methods for processing and utilizing critical minerals. This approach aims to reduce the country's over-reliance on certain minerals and foster self-reliance in the sector. While these efforts are still in progress, the government is committed to supporting innovation and startups in developing sustainable solutions.

The discussions between India and Italy align with the broader Joint Strategic Action Plan for 2025-2029, which seeks to strengthen bilateral ties across various sectors, including trade, technology, defense, and energy. The plan identifies critical minerals as a key area for economic and technological collaboration, with a focus on leveraging joint commissions and working groups to drive investment and promote partnerships between large companies and SMEs.

Both countries aim to enhance collaboration in areas such as Industry 4.0, advanced manufacturing, clean energy, and critical minerals extraction and refining. This includes fostering synergy between academia and industries, as well as supporting start-up ecosystems through initiatives like the Indo-Italian Innovation Exchange Programme. This program will facilitate cutting-edge projects in sectors like fintech, agritech, and healthcare.

Furthermore, India and Italy are committed to increasing educational and research opportunities in the STEM domain, promoting collaboration between scientific organizations, and supporting joint projects. They also plan to organize "Tech Summits" to share best practices, promote knowledge of each other's industrial ecosystems, and facilitate industrial partnerships.

By working together, India and Italy aim to build resilient and diversified supply chains for critical minerals, reduce their dependence on specific regions, and promote sustainable economic development.